Posted by magus > 2018-08-04 17:19 | Report Abuse

Future dividend payout by Tali is bright and a re-rating is likely.

Posted by shortinvestor77 > 2018-08-04 17:30 | Report Abuse

Gamuda most likely will reject the offer.

Posted by newrookie > 2018-08-04 22:14 | Report Abuse

From RM2.55B.. KPS will get RM1.9B but the balance RM650m goes to??? Gamuda or Taliwrk?

Posted by Investeye > 2018-08-05 14:53 | Report Abuse

The deal (2.55B) is excluded the debt of 1.6B which is taking over by government.

Posted by magus > 2018-08-05 15:16 | Report Abuse

if Gamuda rejects the offer then it is time for the PH govt to invoke section 114 of the Water Services Industry Act which allows the govt to assume control of Splash. Gamuda has been the stumbling block to the completion of the deal for too long now always asking for more money. As a result the consumers in Selangor suffers from water shortages from time to time as the upgrading of the water supply and its distribution gets held back. And all because of corporate greed.

Posted by newrookie > 2018-08-05 16:02 | Report Abuse

Investeye.. Thank you for your explanation. That's mean from RM2.55B, Taliwrk get nothing for now. The RM2.55B only for KPS, Gamuda, Fitters, Hiaptek, Engtek & YLI right? So when Taliwrk can get their RM638m back?

Posted by wwq84999 > 2018-08-05 20:33 | Report Abuse

Tali....ready to fuel 97 Ron......tomolo vrooooommmmmm

Posted by Wai Yoong > 2018-08-05 20:44 | Report Abuse

@newrookie it’s for every creditor if the company goes into insolvent, the company has no right not to pay any of its creditors and each creditor shall be paid accordingly. Creditors will be first to be paid and followed by all other bond holders or some other preferred shares. In most cases, the company will have to sell off all of its assets, such as properties or anything, to pay off its creditors with interest if agreed in the invoice order.

Posted by newrookie > 2018-08-05 22:12 | Report Abuse

Wai Yoong.. Ohh.. Means must pay to Taliwrk first then pay to all shareholder. So far no an announcement or any statements from Taliwrk that they will get the payment or they accept this offer (RM638m)..

Posted by Wai Yoong > 2018-08-05 22:33 | Report Abuse

Why does the company even need to announce that? It’s splash’s duty to repay the amount owing to tali. Splash cannot choose what companies need to be paid first and every creditor should be paid equally and fairly if liquiditation comes in control. The company will have to sell off everything and get a total value and then split the amount accordingly to each and every creditor then only followed by other bond holders or preferred shareholders.

Posted by magus > 2018-08-05 22:34 | Report Abuse

what r u guys (wai yoong and newrookie) blabbering about? Tali is not going to get anything from the sale of splash coz Tali is not a shareholder of Splash. The thing about the sale of splash to the Selangor govt is that the debts due from Splash to Tali now won't become bad bcoz the Selangor govt will not default on the debts.

Posted by Investeye > 2018-08-06 08:24 | Report Abuse

PETALING JAYA: Gamuda Bhd, which has maintained that Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) is worth more than RM2.8 billion minus its loans, has until Friday to revert to the Selangor state government on its RM2.55 billion offer for Splash.

The offer was made via Pengurusan Air Selangor Sdn Bhd (Air Selangor) to acquire the entire 50 million ordinary shares and 350 million redeemable unsecured loan stocks of Splash.

It represents a 39% jump from the last offer for Splash of RM1.83 billion made under former Selangor mentri besar Tan Sri Khalid Ibrahim. The offer however falls short of Gamuda’s reported expectations of an at least RM2.8 billion price tag. Splash loans, as stated in January 2015, stood at RM1.56 billion.

Splash is a wholly owned subsidiary of Syarikat Pengeluar Air Selangor Holdings Bhd (Splash Holdings), in which Gamuda has 40% interest, while Kumpulan Perangsang Selangor Bhd (KPS) and The Sweet Water Alliance Sdn Bhd own 30% each.

The sale and purchase of Splash will be transacted through a share purchase agreement (SPA) between Air Selangor and Splash Holdings, and the SPA shall be entered into by Sept 14 at the latest.

If the deal is accepted, the purchase consideration will be satisfied with an upfront payment of RM1.9 billion on the completion date of the SPA while the balance purchase price of RM650 million will be settled in nine annual instalments.

Posted by Investeye > 2018-08-06 08:27 | Report Abuse

The deal is still pending of Gamuda...

Posted by The_Reds > 2018-08-06 09:07 | Report Abuse

Sold all Taliworks..tq and good luck for those still holding

Posted by Wai Yoong > 2018-08-06 09:25 | Report Abuse

http://www.theedgemarkets.com/article/gamuda-likely-accept-offer-splash

Posted by zepth91 > 2018-08-06 09:31 | Report Abuse

that is good new, but why gamuda and kps dropped

Posted by cutie > 2018-08-06 09:50 | Report Abuse

sell on news

Posted by Wai Yoong > 2018-08-06 09:52 | Report Abuse

Gamuda and kps show a significant drop because they think that splash is worth up to 2.88 mil and not 2.55mil, which I think is legit but it has nothing to do with tali.

Posted by smartly > 2018-08-06 09:53 | Report Abuse

buy on rumors, sell on news

Posted by smartly > 2018-08-06 09:54 | Report Abuse

buy on weakness now....taliwrk will give big fat dividend.... :)

Posted by cutie > 2018-08-06 09:55 | Report Abuse

this news already discounted long ago...from 74 sen

Posted by smartly > 2018-08-06 09:59 | Report Abuse

temporary knee jerk, good chance to buy on weakness.

Posted by zepth91 > 2018-08-06 10:05 | Report Abuse

keep on dropping

Posted by cutie > 2018-08-06 10:06 | Report Abuse

117 resistance ...if break...i think 110

Posted by Investeye > 2018-08-06 11:54 | Report Abuse

SPLASH was offered RM2.55bn takeover price by Pengurusan Air Selangor. This represents 28% discount on net book value of SPLASH as of June 30, 2018, which stood at RM3.54bn. This transaction will be structured with upfront cash payment of RM1.9bn while the remaining RM650m will be paid over 9 years with accrue interest rate of 5.25% per annum. Taliworks will receive c.RM382m upfront receivable payment (32 sen per share) assuming similar transaction structure with SPLASH deal. We expect Taliworks will continue to run the operations and O&M for SSP1 water treatment plant due to tripartite agreement signed with Selangor state government. Maintain forecast. Downgrade to HOLD with unchanged SOP-driven TP of RM1.29 as we feel the recent strong share price performance has reflected the optimism of the water deal.

NEWSBREAK
Takeover of SPLASH. Syarikat Pengeluar Air Selangor (SPLASH) was offered RM2.55bn takeover price by Pengurusan Air Selangor. This represents 28% discount on net book value of SPLASH as of June 30, 2018, which stood at RM3.54bn. This transaction will be structured with upfront cash payment of RM1.9bn while the remaining RM650m will be paid over 9 years with accrued interest rate of 5.25% per annum.

HLIB’s VIEW
Receivables. We understand that negotiation regarding RM638m receivables (as at 1Q18) owed by SPLASH to Taliworks is undergoing at this juncture. Assuming similar discount with SPLASH deal (28% discount) and transaction structure (75% upfront cash payment, 25% instalment),Taliworks will receive c.RM382m upfront receivable payment (32 sen per share) with the balance in instalment. Under this scenario Taliworks is expected to write back a small amount of recovered receivables as carrying value of receivables is c.RM452m.

Tripartite agreement. Post finalization of SPLASH deal, we believe Taliworks will continue to run the operations and maintenance (O&M) operations for SSP1 water treatment plant. This is because a Tripartite agreement had been signed between the Selangor state government, SPLASH and Taliworks and the agreement allows Taliworks to negotiate directly with Selangor government, should SPLASH no longer requires its services. However, we do not discount the possibility that there will be changes to the terms under current agreement that is expiring in 2030.

Special dividend. Assuming special dividend of 32 sen being paid, the implied ex special dividend share price would be 98 sen (vs current share price of RM1.30). Moreover, Taliworks is expected to continue the dividend policy of 8 sen per annum post SPLASH deal as the O&M operation is expected to be cash-flow positive. Hence, 8 sen dividend translates to c.8.2% dividend yield.

Forecast. Maintained.
Downgrade to HOLD, TP: RM1.29. Downgrade to HOLD with unchanged SOP driven TP of RM1.29 as strong share price performance over the past 2 months (+53%) has reflected the optimism of finalization of SPLASH deal. Moreover, discount on receivables recovered maybe higher than expected and magnitude of special dividend may disappoint.

Posted by Investeye > 2018-08-06 12:27 | Report Abuse

Collected some at RM1.18 at it dropped too much compared with Gamuda & KPS,

Posted by zepth91 > 2018-08-06 14:44 | Report Abuse

still got hope or better cut loss?

Posted by opustang > 2018-08-06 14:53 | Report Abuse

Taliworks….. tali putus already. it will take another 2 years for them to quarrel. 1.10 coming soon.

Posted by cutie > 2018-08-06 15:31 | Report Abuse

no news from taliwrks....i think if it breaks 117 will go back to 110 or 112. Maybe the company tale a haircut on the 600million. if that is the case it will drop .

Posted by cutie > 2018-08-06 15:32 | Report Abuse

i think it breaks the 117 level

Posted by Investeye > 2018-08-06 15:58 | Report Abuse

If the Splash exercise completed, it is almost certain that the dividend payout will be at least 2 cents per quarter base on previous records(excluding the potential special dividend). So, at RM1.20, the yield is 6.67%. Should see some support at present RM1.18

Posted by cutie > 2018-08-06 16:32 | Report Abuse

112 supporting level

Posted by zepth91 > 2018-08-08 10:07 | Report Abuse

any news on taliworks ? gamuda and kps already fly

Posted by Lim Tek Wai > 2018-08-08 10:30 | Report Abuse

Good potential stock

Posted by zepth91 > 2018-08-08 10:31 | Report Abuse

no movement today

Posted by zepth91 > 2018-08-08 11:23 | Report Abuse

why taliwork didnt follow kps trend, usually they move together

Posted by Stephenloo > 2018-08-08 12:51 | Report Abuse

Because Taliwrk got more debt compare kps

Posted by Wai Yoong > 2018-08-08 15:07 | Report Abuse

http://www.theedgemarkets.com/article/mb-dismisses-claim-selangor-paying-10-times-more-splash-0

Posted by Wai Yoong > 2018-08-08 15:07 | Report Abuse

The debt is because of splash and but anyhow it will go up tomorrow

Posted by zepth91 > 2018-08-08 15:21 | Report Abuse

what makes u say that?

Posted by zepth91 > 2018-08-08 17:08 | Report Abuse

gamuda recover,kps otw, taliwork drops, when gamuda gonna announce whether they accept the offer or not?

Posted by Wai Yoong > 2018-08-08 22:49 | Report Abuse

Just buy and keep only, got potential

Posted by Wai Yoong > 2018-08-08 22:54 | Report Abuse

This year itself the company has declared two times dividend

Posted by Investeye > 2018-08-08 23:07 | Report Abuse

Taliwork is paying dividend quarterly started from 2016. If this Friday Gamuda is accepting the offer then it will turn the attention to RM638m receivables (as at 1Q18) owed by SPLASH. This may become clearer during their Q report announcement which expects by end of next week or around 20th~24th Aug...
At present price, just keep and enjoy it good dividend quarterly (at least 2 cents per Qtr) and looking for special dividend and capital gain in mid term.

Posted by smartly > 2018-08-08 23:14 | Report Abuse

yup. big fat special dividend is coming... :)

Posted by Ron90 > 2018-08-08 23:24 | Report Abuse

Spash will be owned by selangor, and not necessary they will pay Tali lump sum.... if they really got money, why only afford to pay 1.8b? ... Tali may also spread into 9 years.. :-p

Posted by kathyng > 2018-08-08 23:36 | Report Abuse

Over 9 years ? Or 20 years ? Agreement is agreement so just think it in this way, 1mdb was endorsed by federal government and can we get exemption from 1mdb debt ? The answer is no and why? Because as long as the federal government is not bankrupt, the federal government will have to pay the debt agreed when the agreement was signed. Same goes to tali, no discount would be given

Posted by kathyng > 2018-08-08 23:37 | Report Abuse

Unless selangor government declares bankrupt the next day after signing then it will be a totally different story

Posted by kathyng > 2018-08-08 23:40 | Report Abuse

Think of the interest for 1mdb, can we get discount for the interest charged upon 1mdb?

Posted by kathyng > 2018-08-08 23:43 | Report Abuse

Besides that, some of the 638M has already been written off as bad debt so now they are gonna do a reversal of written off